According to the Wall Street Journal and others, grocery chain A&P filed for bankruptcy yesterday for the second time in five years. The Chapter 11 filing will result in 25 stores closing in the near future and another 120 being put up for sale. It was said that Acme, Stop and Shop, and Key Foods were among the bidders. The firm operates under various names in the Northeast and Mid-Atlantic states of the US.
A posting on the A&P website listed the location of the 25 stores slated to close. A&P operates under several different names including Pathmark, Super Fresh, and Waldbaums – making the look up for the 25 property a little tricky. It is possible that we missed one or two.
The biggest loan with exposure appears to be the $27.5 million Pathmark Portfolio note (sponsored by Inland Diversified Real Estate Trust) – 2.6% of the collateral behind JPMCC 2012-LC9. The loan is backed by three single tenant Pathmark stores. According to DelawareOnline, the store at 3901 Lancaster Pike will close. That property makes up about 20% of the allocated balance behind the loan but the note is carrying a DSCR of 2.84x so this could end up being a non-issue.
Next would be the $22.2 million Botany Plaza loan – 1.68% of JPMCC 2013-LC11. Pathmark is the second largest tenant with almost 30% of the space. DSCR was 2.3x in 2013 and securitization LTV was 55. The lead tenant is Sears.
In terms of percentage exposure to a deal, there is the $7.6 million The Shoppes at Longwood loan – almost 50% of DLJCM 1999-CG1. SuperFresh is the top tenant behind this 136,200 square foot asset with 16% of the space. Latest financials were also strong as 2014 DSCR was 1.81. Almost 50% of the original loan balance has been amortized away.
Next is the $9.6 million Walnutport Shopping Center loan – 0.68% of JPMCC 2006-CB15. Superfresh is the top tenant with 53% of the space. DSCR for 2014 was 1.08x. Losses on the CB15 deal have already hit the AJ class. (Story from Natalie Kostelni of the Philadelphia Business Journal).
Another that appears to be impacted would be the $2.4 million Super Fresh Super Store note – 0.19% of JPMCC 2005-CB13. (This is also referenced in the DelawareOnline story). The 51,110 square foot property in Claymont, Delaware lists Super Fresh as the sole tenant. The loan has been with the special servicer in the past.
As we noted, there could be others. We also created a list of tenant exposure to the various A&P names In the Spotlight which covers many more properties that may be sold or re-positioned based on the bankruptcy.
Compliments of Trepp, LLC – a member of the EACCNY.